ITC Limited acquired 100% of Sresta Natural Bioproducts Private Limited (SNBPL), known for the organic brand 24 Mantra Organic – India, for ₹472.50 crore. With this acquisition, ITC aims to enhance their growing portfolio in the organic segment as well.
SNBPL, a Hyderabad-based company, offers a wide range of food products with a focus on the organic and nutrition sectors. This includes a variety of cooking oils. The deal will be closed with an upfront payment of ₹400 cr, and the remaining amount will be paid over the next 24 months. The founder of SNBPL, Rajashekar Reddy Seelam (Raj Seelam), will be assisting the transition.
SNBPL has over 100 organic products that include spices, condiments, edible oils and beverages. Therefore, acquiring this company was a strategic move to build ITC’s portfolio that meets customers needs.
By combining both domestic and export segments of the Indian organic market, the estimated value is around ₹10,000 crore. The government also has been actively promoting the organic products that offer an improved livelihood for farmers, boost exports, and also promote sustainable agriculture.
The Wholetime Director of ITC, Hemant Malik, announced on LinkedIn, quoting – “Brand with a Soul…. 24 Mantra Organic, not just a brand but a movement, built with passion by Raj, his team, and the large network of farmers for whom organic food has been the passion for both consumer health and environmental sustainability. ITC is proud to welcome 24 Mantra Organic to our family!”
The acquisition is a part of the broader strategy that will help ITC to expand in the organic and health-focused food sector. The organic food market in India is estimated to be around $10 billion by 2033. Hence, entering the sector early with strong brand awareness will solidify ITC’s footprint in the Indian organic sector.
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